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Global Critical Power and Cooling Solutions Market to Reach USD32,900 million by 2023

May 2017

According to a new market research report “Global Critical Power and Cooling Solutions Market Size, Share, Development, Growth and Demand Forecast to 2023 - Industry Insights by Type (Critical Power, Cooling Solution), by End-Use (Industrial, Commercial, IT and Telecommunication, Transportation and Others)” published by P&S Market Research, the global critical power and cooling solutions market is projected to reach USD32,900 million by 2023, growing at a CAGR of 10.8% during the forecast period (2017 – 2023).

Global critical power and cooling solutions market worth USD16,320 million in 2016

As per the research, the global critical power and cooling solutions market is likely to grow from USD16,320 million in 2016 to USD32,900 million by 2023. With increasing investments in to small and medium-sized businesses (SMBs) and increasing infrastructural development activities in various sectors such as IT and telecommunication, retail and healthcare, and data centers, the demand for critical power and cooling solutions is expected to gain traction during the forecast period. Moreover, increasing demand for backup power and cooling solutions to avoid data loss is expected to further spike the demand for critical power and cooling solutions during the forecast period.

Insights on market segments

As per the findings of research, the commercial sector emanated the largest demand for critical power and cooling solutions. Critical power has been the largest revenue generator in the global market for critical power and cooling solutions. Uninterruptable Power Supply (UPS) dominated the critical power market, by type; while air conditioning emanated largest demand in the cooling solutions market, by type.

North America stands as the largest critical power and cooling solutions market

North America accounted for the largest region in the global critical power and cooling solutions market, where the U.S. contributed to the largest revenue. Germany was the major market for critical power and cooling solutions in Europe, whereas China contributed to the largest revenue in Asia-Pacific region. Argentina was the largest market for critical power and cooling solutions in Latin America, whereas Saudi Arabia generated the largest revenue for critical power and cooling solutions in the Middle East and Africa region. Additionally, Asia-Pacific, Latin America and the Middle East are expected to exhibit fastest growth in the global critical power and cooling solutions market during the forecast period.

Rising need to reduce the fluctuations in power supply bolsters market growth

The factors driving the growth of the global critical power and cooling solutions market include rising demand for improved cooling efficiency and increasing demand from various end-use applications including data centers, hospitals, banking, financial services and institutions (BFSI), hotels and restaurants. Moreover, the widespread adoption of digitalization and cloud computing has led to the growth in data center infrastructure. This is expected to further create market opportunities for critical power and cooling solutions during the forecast period.

The increasing need to reduce the anomalies in power supply, rise in digitalization and increasing government regulations and initiatives are some of the major factors driving the growth of global critical power and cooling solutions market during the forecast period. Data centers and BFSI are the major consumers of critical power and cooling solutions and this is expected to contribute to the global market at a significant level. The rapidly growing demand for generators in data centers, industrial control systems, facility control systems, industrial networks and communication, control rooms, and critical loads in several industries is expected to further spur the demand for critical power and cooling solutions during the forecast period.

Air conditioning units are widely deployed in commercial applications such as data centers, hospitals, BFSI, hotels and restaurants and therefore, the increasing growth of these applications would benefit the growth of critical power and cooling solutions market to a considerable extent. Moreover, with the advent of information technology (IT), the global banking and financial services market has been expanding on a large scale. Sudden power outages can lead to huge data loss and IT failure, which would affect the ongoing transactions. To avoid such losses, data centers can be installed with efficient and reliable power solutions. This is expected to boost the demand for critical power and cooling solutions in BFSI sector during the forecast period.

The rising data processing power and increasing demand for information storage has led to growth in the number of data centers in the U.S. and Canada. This is expected to drive the market for critical power and cooling solutions in the North American region during the forecast period. Moreover, the increasing growth in the commercial sector and growing applications in various end-use industries such as power plants, hospitals, utilities and manufacturing units in Asia-Pacific is expected to further create huge market opportunities for critical power and cooling solutions during the forecast period. Moreover, the increasing power shortages in China and India, and the rising need for data storage system would further boost the growth of critical power and cooling solutions in Asia-Pacific region.

Major players have stronghold in the global critical power and cooling solutions market

Some of the key players in the global critical power and cooling solutions market include ABB Ltd, Schneider Electric, Daikin Industries, Ltd., Eaton Corporation plc, General Electric Company, Socomec group, Johnson Controls International Plc, Riello Elettronica Group, Nortek, Inc., STULZ Gmbh and Xiamen Kehua Hengsheng Co., Ltd.
Product launches and strategic expansion plans by key players have been the major recent developments in the global market for critical power and cooling solutions. General Electric and Unified Power are increasingly investing in R&D activities and focusing on strategic partnerships and other expansion plans in order to broaden their market presence across the globe.